Like owning your own home, owning your own car is distinctively Australian. Due to the size of our country and low-density population, transit networks aren’t as widespread as other countries – our road networks are, so owning your own set of wheels is extremely helpful in navigating your day-to-day life.
Did you know there are currently about 19.8 million registered motor vehicles here in Australia? That’s 789 cars for every 1000 people and 1.8 cars per household. That’s means there’s lot of cars for sale too, as people are constantly upgrading or downgrading the type of vehicle they drive to match their circumstances.
However purchasing a car is an expensive ordeal, especially if you want a new one. Unfortunately for most people, purchasing even a lower-end-of-the-scale new car which costs about $18,000 is out of reach.
Last year, the median income in Australia was $48,630 (about $42,000 after tax). This means that if the average Australian didn’t have to pay for things like a mortgage, rent, food, transport, utility or leisure, it would still take them almost six months to earn the cost of a base-model Jazz – Honda’s cheapest vehicle.
So why do we see so many people buying new cars? Well, they’ve gotten financial help (such as a car loan). However many Australians – even those with good credit ratings – find themselves unable to get a loan for a new car due to their borrowing capacity, and turn to other options.
View our Car Buyer Guide here.
What are the Advantages of Buying a Used Car?
Price Point
As we all know, new cars are known to drastically depreciate in value over time. So it makes sense to look at used cars – especially in today’s economic climate – to open up a wider range of cars available to you at much lower costs than opting for one off the showroom floor.
Second-hand cars are often the only affordable option for most. But there’s good news to this: A quick glance on the internet will show you there are thousands upon thousands of used cars for sale in Australia on websites such as Car Sales or Cars Guide. For example, a 2010 Honda Jazz will set you back under $5,000; one that is barely 5 years old – and often upgraded from the base model – may only cost $11,000.
Resilience
Cars are durable. While used cars for sale will obviously have more kilometres on the clock and lost their new car smell, in most cases they’re roadworthy with plenty of life left in them and still have modern functionalities – car manufacturers tend to upgrade models year-on-year at a much slower pace than you might think.
Sure, you’re taking a bit of an educated gamble on the vehicle’s history, but provided it has a well-documented service history and you make sure you get a mechanic to check it out beforehand, you can be confident in your purchase.
Borrowing Capacity
It can be heartbreaking finding the right vehicle only to be stopped at the finish line by your financial situation. A person’s borrowing capacity is the number one hurdle stopping people getting financed for the vehicle they want. Because used cars for sale are a much cheaper option, your borrowing capacity is less likely to affect your purchasing ability.
Liquidity
Having enough cash on hand in case of a financial emergency is one of the most common reasons you might be looking for a loan. Instead of putting $10,000 or $20,000 towards the purchase of a vehicle, it may be wiser to just put $1,000 or $4,000 as a down-payment and keeping the rest in the bank for in case of things like an unexpected job loss or unforeseen bills pop up.
Perfect for Your Circumstance
Yes Loans understands that not everyone has a spare $5000-or-so sitting around to purchase a used car, and that everyone from students to those looking for a quick fix or just something reliable to drive – whatever the reason – are looking for a used car loan to get them on the road.
We also understand that some larger financial institutions won’t provide you with a car loan for a used car over five years-old. This can be a huge stumbling block for people that only wish to spend about $10,000 or less on a vehicle. Another stumbling block may be that your go-to financial institution actually has a MINIMUM loan requirement, which may not be suitable for you.
Another reason to talk to Yes Loans is our fast, efficient loan approvals. We know that cars on the market – especially good value ones – don’t stay advertised for long. So the sooner you have the money, the sooner you can buy a car.
Check out how Yes Loans can provide you with the financial aid you require here, so we can help get you into the car you’re looking for as soon as possible.